UBS appointed to find Wanderers buyer

The Western Sydney Wanderers will participate in next year’s Asian Champions League, seen as an attraction for a potential owner who could seek sponsors or business partnerships in the region.
Photo: Getty Images

Football Federation Australia has accelerated its plan to sell the A-League football club Western Sydney Wanderers by appointing investment bank UBS to find a private buyer for the team.

FFA officials met with UBS executives, including Australasian chief
Matthew Grounds
and head of investment banking in Australia
Guy Fowler
, last week to make the appointment.

It is understood FFA, which owns the Wanderers after hastily establishing the team before the 2012-13 season, is seeking about $15 million for the club and is leaning towards a full sale rather than having investors take a partial stake and the remainder be owned by a fans’ group.

UBS will seek Australian and international investors for the Wanderers, which finished first on the A-League ladder in its debut season, attracting large and passionate crowds in the process, before losing the grand final to the Central Coast Mariners in April.

The Wanderers will take part in next year’s Asian Champions League, seen as an attraction for a potential owner, who could seek sponsors or business partnerships in the region.

The Australian Financial Review reported before the A-League grand final that one possible buyer could be Wanderers director
Paul Lederer
, the majority owner of food manufacturer Primo Smallgoods, whose wealth is valued at $630 million by BRW. Lederer said it was “quite feasible" he would invest in the Wanderers.

Qualifying boost

The move comes as the Australian Socceroos national side prepares for its final World Cup qualifier against Iraq in Sydney on Tuesday night. The Socceroos would qualify for next year’s tournament in Brazil should it win the match (and possibly with a draw).

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It is estimated qualifying could bring an additional $15 million into FFA’s ­coffers from world governing body FIFA, which distributes prize money and other income to the 32 countries that make the World Cup.

FFA received $10 million in extra revenue from qualifying for the 2010 world cup in South Africa, through income from FIFA and bonuses from sponsors. “Qualification from a business and overall point of view would provide a genuine boost for football," FFA chief executive
David Gallop
said.

FFA has held preliminary discussions with the Department of Foreign Affairs and Trade about which government and business relationships could be strengthened by qualifying for ­Brazil. Austrade and DFAT have held various business facilitation events ­during previous large international events, including Olympic and Commonwealth Games.

The crowd of almost 44,000 in Melbourne last week for the 4-0 win against Jordan was above FFA’s forecast budget, according to Mr Gallop. He expects a similar scenario for Tuesday’s match at ANZ Stadium.

However he would not reveal what financial result FFA is budgeting for its 2013 financial year ending June 30. In the 2011-12 financial year, FFA made a $1.45 million surplus, but only after about $7 million worth of asset sales.

Fans show support

The organisation has also been buoyed by an increase in traffic to its website, Facebook and Twitter interaction, Mr Gallop said. “The Socceroos have rung a bell with football fans, and the level of digital engagement in the past month shows the youth market is extremely attracted to our sport."

FFA’s contract for digital rights with Optus, which also encompasses a sponsorship deal, expires next month. The organisation is in talks with
Telstra
and Perform Media, which broadcasts National Basketball league matches via the internet.

Mr Gallop would not be drawn as to when those negotiations will be completed but it is understood FFA hopes to have a deal in place before English Premier League clubs Manchester United and Liverpool tour Australia in late July.

FFA has sold broadcast rights for both matches to
Seven West Media
, and will take a cut of several commercial revenue sources for the A-League All Stars versus Manchester United game in Sydney. It is understood FFA could make a profit of close to $2 million from both matches.